I am 26 years old. I have recently started SIPs of Rs 12,000 in three mutual fund schemes: Kotak Standard Multicap Fund, ICICI Prudential Bluechip Fund, and HDFC Mid-Cap Opportunities Fund. My investment horizon is 15 years. I want to create Rs 1 crore in 15 years. Should I continue to invest in these three funds? --Sachin SinghDilshad Billimoria, Founder, Dilzer Consultants, responds: To create Rs 1 crore in 15 years, you need to invest Rs 26,000 to Rs 27,000 every month. You have chosen good schemes. However, I do not know whether they match your risk profile. If you want to reduce the overall risk in the portfolio, you may add an Index fund. You can also make some fixed income investments to balance your mutual fund portfolio. … [Read more...] about Should I continue to invest in these mutual funds?
Why fixed income over equities
NEW DELHI: Much against Street expectations, the Reserve Bank of India on Thursday decided to keep its powder dry as it maintained status quo on policy rates in its fifth bi-monthly monetary policy review of the financial year.All the members of the MPC voted unanimously in favour of holding the rates. RBI also kept the stance accomodative. It lowered FY20 real GDP growth projection to 5 per cent from 6.1 per cent.Here's full text of the policy outcome: On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) at its meeting today (December 5, 2019) decided to: keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 5.15 per cent. Consequently, the reverse repo rate under the LAF remains unchanged at 4.90 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 5.40 per cent. The MPC also decided to continue with the accommodative stance as long as it is necessary to … [Read more...] about Full Text: RBI keeps powder dry, maintains status quo; here’s why
The Reserve Bank of India (RBI) on Thursday surprised the money market participants, who were anticipating a 15—25 basis points cut in key policy rates, and held the policy rates in its monetary policy review. The banking regulator paused, after five straight previous cuts, and kept its key policy rate, the repo rate -- the rate at which it lends to banks-- unchanged at 5.15%. That might sound like a status-quo policy, but considering the surprise element that comes with it, does this warrant any change in your mutual fund investment strategy? Mahendra Jajoo, Head-fixed income, Mirae Asset, says, “We were expecting 0- 25-bps rate cut. However, I believe that rate cut has done its part now.” Jajoo says what is needed right now is a spending and income plan from the government. “If the RBI does not come with a plan in the near future, the market will be disappointed,” he adds. According to money market participants, several factors might have influenced … [Read more...] about RBI policy surprise: Should you change your mutual fund strategy?
2019 would be a change in the sense that foreign inflows should also be quite strong both on the equity and fixed income side, Sunil Singhania, Founder, Abakkus Asset Manager, tells ET Now.Edited excerpts: Will it be a great 2019 for investors or is this going to be another challenging year? First of all, any equity investor has to be optimistic. If one is not optimistic, then one should not be an equity investor. Also, in a growing economy it makes sense to be optimistic. As far as challenges are concerned, we have seen many challenges over the last few years and these will continue. I think that is the essence of life. Notwithstanding the challenges and notwithstanding fact that 2018 was a very challenging year, we remain quite optimistic about 2019 and the years forward. But sometimes you have to be realistic. I mean in 2008, if you had become optimistic, then your optimism did not help. Now you are talking and comparing it to a very different year where it was euphoric. I do … [Read more...] about Value will take precedence over growth in next 1-2 years: Sunil Singhania, Abakkus Asset Manager
The latest regulation on net capital management of commercial banks' wealth management subsidiaries encourages the subsidiaries to invest in standard and high-grade assets, operate in a prudent manner, and avoid expanding business blindly, analysts said. The China Banking and Insurance Regulatory Commission has fixed the net capital threshold for commercial lenders' wealth management subsidiaries at 500 million yuan ($71 million) and 40 percent of the subsidiaries' net assets. Net capital of the subsidiaries should also be no less than 100 percent of the risk capital, according to a regulation for trial implementation released by the CBIRC on Monday. Coming into effect on March 1, the regulation forbids bank wealth management subsidiaries to invest their own capital in nonstandard assets and sets higher risk coefficient for the subsidiaries to invest wealth management funds in nonstandard assets, compared with standard assets. According to the rules, the risk coefficient for investment … [Read more...] about Investment access eased for bank’s wealth units